ADA, the cryptocurrency of the Cardano network, is now the 6th largest cryptocurrency in the ecosystem. Here is an analysis of this crypto.
The crypto market does not stop. Even though Bitcoin has been resting, there are some cryptocurrencies that are making new yearly highs, and even all-time highs. Cardano (ADA) is one of them, capable of reaching a price of $ 0.4149, which had not been unreached since May 2018.
At the time of writing, ADA is trading at $ 0.3708, accumulating a gain of 30.10% in the last 7 days.
There are 2 reasons behind the rise of this crypto, the first is a favorable technical scenario, and the second that is really important is the update of the network.
In 2020 Cardano released Shelley, an upgrade to the mainnet, making way for a blockchain now validated by proof of stake, increasing the scalability of the network.
This was a major milestone for the cryptocurrency itself over the past year, evidenced by an overall positive sentiment for ADA for most of 2020.
Despite this, all the improvements are still not online. Smart contracts are not activated yet, when it happens, it will be giving way for decentralized protocols, better known as DeFi, to start running on top of the Cardano network.
Due to the expectation of smart contract launches over this network, sentiment regarding ADA is improving. There is still a long way to go for this blockchain according to the roadmap, but investors are beginning to accumulate to discount a possible price increase.
Cardano Technical Analysis (ADA)
In the weekly chart of ADA vs USD we see a clear medium-term uptrend, currently developing momentum that could, be careful, be running out.
There aren't many signs yet that Cardano needs to make a major correction soon. Perhaps a small drop will be enough to pick up demand from those who take advantage of discount prices and fully trust the project.
For the bulls to lose control of the medium-term trend, the support at $ 0.1538 must be breached. For now, the odds remain on the bullish side.
Cardano (ADA) weekly chart. Source: TradingView .
Short term trend
On the daily timeframe the bulls are also in control, creating ever higher lows and highs.
Yesterday after reaching that high of almost 3 years, some selling pressure immediately appeared, which could now be considered as a small correction before continuing to rise.
To think about the beginning of a bearish scenario, the support at $ 0.3021 must be crossed.
ADA vs USD daily chart. Source: TradingView .
My coins for 2021 are EOS, DOT, ETH, LTC